William hill pre-tax profits dip by 3%

British bookmaker William Hill has reported a 3% dip in pre-tax profits for 2011, partially down to an exceptional charge of nearly £2m (€2.35m) relating to its pull-out from the Irish retail market last year.

The company had closed the majority of its Irish- based shops, before finally selling off the last 15 to Boyle Sports late last year. In all, group exceptional costs topped £50m last year.

Before these exceptional items were accounted for, William Hill’s profits amounted to £239.4m; 9% up on the previous year, but including the exceptional costs, profits amounted to £187.4m.

By the time of the Boyle Sports sale, William Hill had closed 20 of its underperforming shops here.

“Excluding the Republic of Ireland, the estate increased by a net 1% — in line with the group’s expectations. We recorded exceptional costs of £1.9m related to the withdrawal from the Republic of Ireland,” the company said in its annual statement.

Group chief executive Ralph Topping called the results — which also included 6% net revenue growth to £1.14bn and a 1% rise in retail revenue — “a very positive performance, particularly in a year without a significant international football tournament, and with a £9m increase in VAT payments as a result of the rate change”.

Mr Topping said the firm had great confidence that, as a multi-channel gambling company with a strong management team, it was “well placed to leverage the advantages of the William Hill brand”.

“We believe there are more opportunities to grow in our core market in the UK and also for the business to expand internationally beyond our traditional roots, as more governments open up their regulated gambling markets.”

The company made its first foray — via acquisition — into the US gaming market last year. Its Irish presence has not totally diminished. Last year also saw William Hill open an Irish-specific online betting site, targeting GAA betting in the main.

The online channel has been where the company has really been growing of late; revenues in that division up by nearly 30% last year to £321.2m; still well below half of what was generated by its British retail portfolio.